Apple hits the forecasts, albeit reduced by the well-known "warning" a few weeks ago, but the climate remains difficult and Cupertino suffers on the whole front and travels on sight. This is the juice of the comments of Fred Anderson, head of the financial sector of Apple, at the presentation of the fiscal results of Cupertino. The quarter ended with profits of 32 million dollars, 9 cents per share, on a turnover of 1.43 billion dollars. As mentioned, Apple hit the lowered forecasts a few weeks, ana ago, but the weakness in performance in comparison with the same quarter of last year when Apple had gained almost double (61, million dollars) on a turnover of 1.48. Millions of dollars.
During the quarter, Apple sold 808,000 computers, 2% less than the same quarter last year. The drop is noticeable especially in the desktop sector but also in the business sector. The iMacs and eMacs performed less well than expected but the PowerMacs and PowerBooks purchased by those who use the machines professionally were also below expectations. This situation, despite a slowdown in iMac production, led to an increase in warehouses to 6.5 weeks. Data say that LCD screen iMacs, original CRT screen iMacs and added eMacs have sold off for 378,000 pieces, few more than those of the iMac Only in the previous quarter. The PowerMacs sold dropped to 167,000 from 211,000. PowerBooks are growing, albeit slightly (94,000 vs. 89,000), but sales of iBooks are significantly increasing (from 141,000 to 169,000). The Xserve distributed on the market is also less than expected. Overall, in any case, the reduction in sales attributable to 80% of the bad performance of iMac.
Speaking of specific markets Anderson said that the worst situation is being determined in Europe where half of the overall sales drop for Cupertino came from. In Europe, Apple is also finding an evolving market that has to take account of the strengthening of the Euro.
Educational sales are also doing badly, 7% below Apple's forecasts and 17% lower than last year's.
Sales in retail stores were also lower than expected.
Anderson's gaze to the future had extremely cautious accents. The head of financial operations stressed how the "Switch" campaign is starting to work, but the expenses are expected to grow following some investments and margins could decrease following the price reduction on some models. Alongside this, some key investments, such as that in Akamai and Earthlink, do not perform well. Finally n for the consumer market n, above all, for the educational market which in the quarter from July to September makes some of its main purchases, a rebound is expected. All this, added to some restructuring costs with the layoff of 7% of the employees of the Sacramento plant, could lead to losses in the next fiscal quarter.
If Anderson's predictions come true, it would be the first quarter in red from the now famous "black quarter" of the end of 2000 when Apple declared losses for millions of dollars and the market responded with a 50% reduction in the value of Cupertino's shares.
Further details and a summary table of tax results, you can have them in this other Macity article